The Merit Shop Spokesman - May 2022 - ABC Keystone

Merit Shop The

May • 2022

Spokesman A Monthly Publication of ABC Keystone

STEP – Begin the Journey to World Class Safety

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OSHA’s New National Emphasis Program for Heat Stress

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Celebrate

Construction Safety Week!

May 2-6

ABC Keystone Leadership 2022 Executive Committee:

CHAIR of the BOARD – Keith Eldredge, CPA, RKL

CHAIR-ELECT – Steve Conway, Pyramid Construction Services, Inc., a Quandel Enterprises Company

1st VICE CHAIR – John Lehmann, Poole Anderson Construction, LLC 2nd VICE CHAIR – Guy Kingree, Warfel Construction Company SECRETARY – Steven Kearns, James Craft & Son, Inc

TREASURER – Timothy A. Kershner, CPA, Walz Group

IMMEDIATE PAST CHAIR – Cleo Weaver, Delainco Realty, LLC

2022 Board of Directors:

Robb Beiler, Quality Buildings LLC Jeff Bright, Saxton & Stump Lawyers and Consultants Roger S. Brubaker, Meadow Valley Electric, Inc. Douglas M. Dvorchak, Murray Ed Engle, Smucker Company Joe Finkey, Martin’s Flooring, Inc. Brian Floyd, Gunn-Mowery, LLC Wayne Fuhrman, The Witmer Group Michael B. Funck, Wohlsen Construction Company Ken Funk, Arthur Funk & Sons, Inc. John H. Hykes II, B&B Integrations David H. Oblender, Engle-Hambright & Davies, Inc. Jon Sensenig, Speedwell Construction, Inc. James Stephens, CFSP, 11400 Inc. Bethany Tesché, Houck Services, Inc. Jan L. Wagner, Wagman Construction, Inc. Thomas O. Williams, Esq., Reager & Adler, P.C.

G. David Sload, President-CEO

ABC Keystone | 135 Shellyland Road, Manheim, PA 17545 (717) 653-8106 | abckeystone.org The Merit Shop Spokesman is published 12 times a year by Associated Builders & Contractors, Keystone Chapter.

Articles of interest, member news, press releases, and advertising placement requests may be submitted to the Editor: Kristi Pronovost Director of Marketing & Communications ABC Keystone kristi@abckeystone.org (717) 653-8106

Connect with ABC on Social Media! @ABCKeystonePA LinkedIn.com/company/abckeystone/ @ABCKeystone @ABCKeystone

Merit Shop The

Spokesman Contents

2 Chapter Calendar 3 Message from the Chair 5 Message from the President-CEO 7 Advocacy Update 8 Member Spotlight 9 Safety Update 10 Congratulations to Our STEP Members 13 Addressing Mental Health 16 New Members & Anniversaries 17 Ask an Accountant 20 Member News 21 Young Professionals Spotlight 22 Young Professionals Perspective

Chapter Calendar - Register Today!

Career Development Education, Safety Training & Networking

May

June

Starts 5/2 - Dynamic Crew Leadership 5/4 - ABC Keystone’s Regional Construction Wake-up Call Capital Region, Penn Harris Hotel, Camp Hill 5/4 - Successfully Managing Change - Part of the Professional Development Series 5/10 - Developing High Trust Teams - Part of the Leadership Development Series 5/11 - ABC Keystone’s Regional Construction Wake-up Call Lancaster Region, ABC Keystone, Manheim 5/11 - ABC's Human Resources Contractor Peer Group 5/12 - Project Planning & Execution - Part of the Understanding the Construction Process Series 5/18 - Job Descriptions, HR Recordkeeping and Reporting - Part of the Human Resources Management Academy Starts 5/18 - Basic Blueprint Reading 5/18 - ABC Keystone’s Apprenticeship Graduation & Craft Professional of the Year Ceremony - Clipper Magazine Stadium, Lancaster 5/19 - Electrical Safety - Protection Requirements from OSHA & NFPA 70E 5/20 - Competent Person for Excavation and Trenching 5/23 - Rough Terrain Forklift Training 5/24 - Obtaining Clearances for Individuals with a Criminal Past 5/25 - ABC Keystone’s Technology Day Presented by SMARTBUILD | Featuring: Sessions, Demonstrations, EXPO & Reception - ABC Keystone, Manheim 5/26 – Preconstruction & Estimating Starts 5/27 - OSHA 10-Hour Construction

6/1 - Time Management - Part of the Professional Development Series 6/6 - HSI Adult First Aid/CPR/AED 6/7 - ABC Keystone’s Golf Outing Presented by United Rentals Iron Valley Golf Club, Lebanon 6/9 - Project Compliance & Outside Organizations - Part of the Understanding the Construction Process Series Starts 6/13 - A BC Keystone’s All ’bout Construction (ABC) Girls Camp – 2022 6/14 - Understanding Financials for Non-Accountants - Part of the Leadership Development Series 6/15 - Effective Recruiting & Hiring - Part of the Human Resources Management Academy 6/17 - Competent Person for Confined Space Entry 6/23 - Rough Terrain Forklift Training

Register Online: abckeystone.org We Can CUSTOMIZE TRAINING for Your Team's Unique Needs!

Save the Date!

8/2 - ABC Keystone’s Summer Outdoor Mixer Presented by Saxton & Stump Lawyers and Consultants

CONTACT US TODAY! (717) 653-8106

Barbara Holtzapple (Career Development) Kevin Keith (Safety)

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A Message from the Chair

I

t’s that time of year again. Almost as exciting as the holidays. It's STEP season. Okay, I can hear the groans and the eye rolls, and it reminds me of my wife or our girls as they respond to one of my comments. But it truly is an exciting time for ABC with the approaching STEP application deadline of July 1 for recognition at the Safety Recognition Breakfast on August 16. STEP is an extremely important time for us, and the data that is collected helps us to accomplish two of our missions: protecting employee total human health and advocating for your businesses.

Why is STEP important to you and your business?

That has been the question every chair has tried to answer. Typically, you hear statistics stating those that participate are 655% safer than those that do not participate, or you hear it is important to have a good safety program. Both are valid and are correct facts, but there is so much more to be gained.

STEP is a journey.

Participating in STEP is similar to continuing education; you never finish or get to the point when there is no more to learn. Each year you get to measure yourself against the industry and against your previous year. You get to see the improvements you have made and how they have affected your employees and your bottom line.

Yes, safety is important, but there is much more to that concept now.

Total human health impacts your jobsites.

Since the shutdown, we have been hearing more and more about mental health issues and their impact on employees. We are learning that many people have been suffering, and the shutdown made those struggles worse. STEP has taken on a new total human health element. It is our job as owners to not only provide a safe environment, but to also take an interest in our employees' mental well-being.

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I can tell you from experience when someone is facing

issues and feels they are alone, they are not very productive or worried about the safety of others. Their mind is completely consumed with their issues. We need to make sure that the people on jobs are not only physically safe, but mentally safe. When you have someone on a job that is not fully focused mentally, it means they are not focused on the physical side of safety either. We have a responsibility not only to the employee that is having issues, but to everyone on the job, keeping them safe and ensuring everyone is focused on the tasks at hand.

If you think total human health doesn’t affect your job, then you may not understand how mental health affects an employee’s work.

As I said, I talk from experience. When I was going through my divorce, many days it took everything I could muster to get out of bed and get to work. How focused was I accomplishing someone’s tax return? How focused was I on helping solve problems or on the people with whom I was working? It was a good thing I was not around heavy equipment, and no one had to worry about me making a move that could harm them. Now, imagine someone struggling emotionally on a jobsite that is filled with safety requirements and potential risks. If you think it is not happening on your site, you are wrong.

I guarantee that there is someone on your site that is distracted by something that is happening outside of work, and they could use a friend to help them. Thank God I found one that helped me move forward, and I was able to get out of the funk I was in.

represented in the STEP statistics. They say that 20% is not a representative sample, and the politicians agree with them. How much stronger would the argument be with 30%, 40% or even 50% of our contractor members responding?

STEP data strengthens our legislative position.

STEP is also important for ABC's legislative advocacy efforts. For as long as I can remember, ABC has been fighting to see the apprenticeship ratio bill passed. We are not asking for anything more than to be treated the same as those with collective bargaining agreements.

But the unions are very good at messaging, and we have not helped ABC in the same way.

The best way to combat misinformation is with reliable data.

We need to STEP up and help ABC as well as ourselves. Please consider filling out your STEP application. There is no cost to you, and ABC Keystone staff are willing to help you with any questions you may have as you complete your application. Your data may be the final piece we need to convince the politicians to move the ratio bill to the full floor for debate.

The unions continue their campaign of misinformation by attempting to spread a false message that merit shop contractors are not safe. They say merit shop contractors don’t have as effective safety programs as union contractors. When ABC presents data on the safety statistics we get from the STEP applications, it overwhelmingly proves the unions wrong.

Yet, there is still a significant opportunity we lose. It does not help our message when the unions point to the fact that only 20% of ABC merit shop contractors are

Keith Eldredge, CPA 2022 Chair of the Board RKL keldredge@rklcpa.com (717) 843-3804

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To learn more, visit abckeystone.org/member-benefits or contact: Mike Bachman, Director of Membership | mike@abckeystone.org

Your ABC Keystone Membership Can Pay for Itself!

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Hear from the President-CEO

ABC Keystone Set to

Expand T

he Keystone Chapter is set to expand its footprint from 10 counties of South-Central PA to a new footprint of 33 counties in Central PA. The Board of Directors for the ABC Central PA Chapter recently voted to have their Chapter consolidated into the ABC Keystone Chapter. Following this vote, your ABC Keystone Board of Directors voted to accept the consolidation. The final step will be for the National ABC Board to approve the consolidation at its June Board meeting.

challenge. In addition, ABC Central brings to the table a number of long-time legacy members that are excited and ready for the opportunities that ABC Keystone has to offer.

What does this mean for ABC Keystone?

I believe this is the “What’s Next” that I talked about in January. This is an exciting time for not just ABC Keystone, but for the entire construction industry within Central PA. This expansion in membership brings new connections, which means more opportunities for members to network. The move also brings expanded locations for education and training and additional entry points for workforce development.

For the last several years, the Keystone Chapter has been providing government affairs services to ABC Central. As of this year, ABC Keystone has also been providing apprenticeship services for that area. Over the next several months you will see a roll out of education and networking opportunities. ABC Keystone members who have employees in these counties will now have more options for locations for these courses and events.

Our hope is that our members will begin to cross pollinate to create an even more vibrant Chapter.

Some may question, how we will serve a larger area while still providing quality service. It starts with an engaged Board of Directors to provide guidance along with an energized staff ready to take on this new

Gold Stars: ABC Keystone's original footprint Yellow: ABC Keystone's expanded footprint

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“

Yes, we are writing the next chapter of the “It” factor for ABC Keystone. Please join me in welcoming all of the current members of the ABC Central PA Chapter. To quote past-chair Cliff Wilson, “We are Keystone Nation,” and we are looking forward to working together!

This is an exciting time...for the entire construction industry within Central PA.

G. David Sload President-CEO dave@abckeystone.org (717) 653-8106

STEP Up to World Class Safety!

Submit your STEP application by July 1 to be recognized at ABC Keystone's Safety Recognition Breakfast on August 16!

Don't delay - Apply today!

If you need assistance, contact: kevin@abckeystone.org

SAFETY. YOUR #1 PRIORITY.

[place your logo here]

CONNECTED. SUPPORTED. SAFE. MAY 2-6

Advocacy Update

Federal Office • There are seven Republicans and four Democrats running for U.S. Senate.

• In the 17 congressional districts, there are 27 Republicans and 26 Democrats running.

• There are five incumbents facing primary challenges – two Republicans and three Democrats.

• There are two open seats, both in western Pennsylvania.

State Office • There are nine Republicans and one Democrat running for governor.

• There are nine Republicans and three Democrats running for lieutenant governor.

• There are four Republicans and two Democrats running in the same district due to re-districting.

• There are 36 legislators who have announced they are either retiring or seeking higher office.

Given these numbers, ABC believes this election will have an impact on Pennsylvania’s future – including how the commonwealth responds to critical workforce needs.

Throughout the summer and fall, our leadership team will

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a ll

Let’s look at the overall primary statistics:

B tal

The primary is crowded in many of the statewide races, and we anticipate a large freshman class entering the General Assembly later in the year. As a service to our members, ABC of Pennsylvania issued an Election Overview intended to provide biographical information about candidates seeking office at the state and federal level. You can find that guide on ABC Keystone’s website at abckeystone.org/advocacy-politicalaction/.

T

gh the u o Cr hr

ys

T

he Pennsylvania primary election will take place on May 17. In the coming weeks, we will know which candidates will move on to the General Election.

Lookin g

By: David G. Greineder, IOM ABC Pennsylvania Director of Government Affairs

be engaged in robust planning sessions with all regional chapters and ABC National to discuss and map ABC’s involvement in the election cycle. We will be looking for your participation in a long list of activities, from attending events to talking with your neighbors. To prevail this November, we need everyone moving in the same direction to support candidates that are committed to defending free enterprise and the merit shop philosophy.

As mentioned in earlier articles, along with ABC of Pennsylvania’s engagement in political activities, we continue to advocate on your behalf in the halls of the Capitol Building. While session days are few, the flurry of activity is fierce as we monitor and weigh-in on a full agenda in Harrisburg. There is no shortage of issues, and your involvement and voices are so important as we support good bills and block bad bills.

If you are not signed-up to receive email alerts, please download the “ABC Action App” from the app store on your mobile device, or at abc.org/abcaction.

Member Spotlight

graphtech

Tell us about your company!

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Having been in business for 40 years, graphtech has the tools and expertise to be an extension of any team and is committed to partnerships that deliver results.

How did you enter the industry?

Amy: I first began selling for the publication division, then I transitioned into Project Management and then to company-wide sales. I have been with the company for 11 years.

Joe: I initially worked in transportation and logistics before coming on board with graphtech to sell the company's services. I have been with the company for four years.

Did You Know?

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Amy Mehl

Business Development graphtech

amy@thinkgraphtech.com 717-238-5751 thinkgraphtech.com

Joe Beahm

Account Manager graphtech

Joe.Beahm@thinkgraphtech.com 717-238-5751 thinkgraphtech.com

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Safety Update

By Kevin Keith, Director of Safety

OSHA’s New National Emphasis Program for Heat Stress

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SHA has released a new emphasis program designed to protect workers from heat related illnesses. This is the first time that OSHA has put together a tool to protect workers, whether they are indoors or outdoors, from an environmental exposure to heat. The effects of working in higher temperatures has been studied for several years, and it was evident that some sort of protections would be implemented for this type of exposure.

OSHA has identified high risk industries that need to act, and construction is one on the list. This will require employers to plan ahead to address work schedules, educate employees of the dangers of working in heat and implement a plan of action including the measures to be taken in the event of a worker being overcome.

Heat related hazards exist and are becoming a larger issue as a result of climate changes. Most fatalities that result from working in a warm or hot environment occur in the first few days during the seasonal change from cooler to hot temperatures. Employers must recognize this and consider implementing an acclimatization period for workers. Once

acclimatized, the worker is still at risk for injury/illness.

As the summer months progress, workers can become dehydrated if they are not drinking enough water and electrolyte replacement drinks. OSHA’s 29 CFR 1926.51(a) (1) states that employers are to provide potable water in all places of employment. In addition to this regulation, OSHA is asking employers to provide cool drinking water as part of the prevention of heat stress. Employers should also consider identifying break areas that are shaded or air conditioned to allow workers to cool down during hot days.

Employers should have employees download the NIOSH Heat Index App to better identify times of the day of concern and to know the signs and symptoms of the heat related illnesses. There should be a plan of action to take in the event a worker shows signs of illness. This would include a first aid response team and an area designated for cooling a worker, as well as the activation of the sitespecific Emergency Action Plan and early activation of EMS. To best assist employers, OSHA has designated a page on the website and it can be found at Heat - Overview: Working in Outdoor and Indoor Heat Environments | Occupational Safety and Health Administration (osha.gov).

It provides guidance on compliance with the new program.

Effective safety requires work that includes planning and good supervision. This new emphasis program may seem like a lot at first, but it is likely something employers have already had in place, but just didn’t have it formalized into a written plan. Training and educating supervisors and workers will go a long way to help prevent heat related illnesses in the workplace. Visit www.abckeystone.org to look at our upcoming education and safety training classes.

If you have additional questions regarding your safety policies, please feel free to contact Kevin Keith, Director of Safety, to discuss your concerns or issues.

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Congrats to ABC Keystone's 2022 STEP Recipients!

Diamond:

11400 Inc. Quandel Enterprises, Inc.

Platinum:

James Craft & Son, Inc. Hursh Painting Co., Inc. Leo Kob Co., Inc. Smucker Company

Gold:

Warfel Construction Company

Silver:

C.M. High, Inc. John E. Fullerton, Inc. Johnston Construction Company Mowery M. Potteiger, Inc. Wohlsen Construction Company

As verified by ABC National as of April 2022 Watch future Merit Shop Spokesman issues for updates!

Bronze:

B&B Integrations C Mechanical Services D.E. Gemmill, Inc. Galbraith/Pre-Design, Inc. Kauffman Kitchens The Tuckey Companies White Rose Interiors, LLC H.L. Wiker, Inc.

Is Your Company On this List?

Get started with your application today!

abcstep.org

Celebrate the Graduating Class of 2022 & the Craft Professionals of the Year!

Wednesday, May 18, 2022

2022

5:30 pm – Registration & Ballpark Buffet Dinner 6:30 pm – Program

Clipper Magazine Stadium (Home of the Lancaster Barnstormers!)

Register online at: abckeystone.org

Apprenticeship Graduation Craft Professionals of the Year Ceremony

&

Thank You to Our Trade Sponsors: • Carpentry – Benchmark Construction Co., Inc. • Electrical – Belmont Solar More Sponsorships Available!

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Tuesday, June 7, 2022 Two Flights: 7:30 am & 1:30 pm Shotgun Starts

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“Our company looks forward to this outing every year, as it is great for team building and gives us a chance to get out of the office and see others in our field. It is always very well attended, and the ABC team does an excellent job facilitating all the moving pieces to keep it running smoothly.”

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to Addressing Mental Health in the Workplace

By Cal Beyer, Construction Executive Contributor

A

fter leading hundreds of live and virtual presentations and group conversations on mental health, substance misuse and suicide prevention in the workplace, several recurring barriers have been identified that limit leaders and organizations from addressing these topics. Make no mistake, it is becoming considerably easier to talk about these topics in the workplace. Yet, there is zero doubt that many leaders, managers, supervisors and employees are afraid to discuss these topics.

This is sad and can lead to unfortunate—if not tragic— circumstances. The reality is if society was better at tackling mental health challenges, then the necessity of doing so in the workplace would be less of an imperative. Mental health remains a taboo topic with significant levels of stigma and shame associated with talking about it in the workplace, which is understandable after hundreds of years of not doing so. The concept of a caring culture remains an alien thought to workers whose perception is to have been treated as machines and “human doings” more than as human beings.

STIGMA AND SHAME Stigma is a major barrier that keeps people from

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acknowledging that they are not okay. Stigma is a fear of the unknown combined with a fear of judgement from others or a fear of consequences—real and perceived.

A real concern expressed by workers about disclosing a need for mental health support is fear of adverse job consequences.

Therefore, stigma remains a barrier that keeps people from either offering or seeking help.

Acknowledging help is needed historically has been seen as a sign of weakness rather than as a sign of strength.

Stigma and shame go hand in hand.

Where stigma and shame exist people are uncomfortable or afraid to talk about mental health, which leads to people suffering in silence.

Example of barriers to be overcome to address mental health in the workplace include: • Social stigma of others; • Self-stigma and shame; • E mployers are unsure of how employees will respond to programs and practices; • P rivacy and confidentiality centered on HIPAA compliance;

• U nsure of the level of risk employees and families are experiencing when suffering in silence; and • Companies are not sure where to start.

INTENTIONAL STIGMA-BREAKING The most important starting point is intentionally undermining stigma centered on mental health issues.

The most effective of the group presentations delivered to audiences in workplaces or on jobsites start with a moment of silence to honor those who have struggled or fallen due to these deeply intense issues. The personal appeal to those who have lost a loved one is palpable.

Stigma is a silent killer by preventing people from offering, seeking or accepting help. Only by reducing stigma can progress really be made in addressing the underlying issues leading to mental health, substance misuse and suicide prevention.

MENTAL HEALTH AND WELLBEING IN CONSTRUCTION PULSE SURVEY In September 2021, the Center for Workplace Mental Health released the results from the Pulse Survey on Mental Health and Wellbeing in the Construction Industry. This pulse survey focused on opportunities to continue moving forward in effectively addressing worker mental health and wellbeing in construction. The final survey report highlights findings, strategies, recommendations and resources to improve mental health for construction workers. The Mental Health and Wellbeing Survey addresses four crucial challenges.

1. E ngaging company leaders to support mental health initiatives visibly, vocally and vulnerably. Leaders who exhibit these “three Vs” lead by example and let workers know “it is okay to not be okay.” Leaders who care share resources to help workers and families in need of support. Where these “three Vs” exist, a fourth “V” for "vertical" emerges as workers up and down the organizational structure begin to freely share their lived experience.

2. R aising mental health awareness by regularly sharing resources with employees. It is important for employees

to better understand the services and supports available to them and their dependent family members. Teaching employees how to tap into employee assistance programs and employee health insurance programs is important education.

3. C reating a mentally health culture to reduce the stigma and shame associated with mental health. It is important to increase the literacy of health and mental health for leaders at all levels in a company. Take time to educate leaders and supervisors why mental health is a workforce safety and health issue. Provide training to promote and reinforce psychological safety in the workplace and on jobsite.

4. R emoving barriers and enhancing access to mental health services and support. Barriers to care seeking and acceptance can be removed by integrating mental health into human resources functions, employee benefits programs and safety/health and wellness practices.

A CALL TO ACTION: IMMEDIATE STEPS LEADERS CAN TAKE NOW • Read the 2021 Mental Health and Wellbeing in Construction Survey Final Report.

• R ead the flipbook, Building a Caring Culture: Addressing Mental Health in the Workplace.

• D iscuss mental health with the senior leadership team and develop a simple strategy to develop a mentally health culture and to improve sharing resources with employees and family members.

• C ommit to stamp out stigma in the organization by creating a no-shame zone with a psychological safe work environment where managers and supervisors support workers with empathy and understanding.

Beyer, Cal. “Overcome Barriers to Addressing Mental Health in the Workplace.” Construction Executive, 7 Mar. 2022, https://www. constructionexec.com/article/overcome-barriers-to-addressing-mentalhealth-in-the-workplace.

Construction Executive is a publication of Associated Builders and Contractors. Copyright 2020. All rights reserved.

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BETTER MORE PREPARED

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Call our Construction Services Division

SECURE

We give you a strategic advantage to anticipate and prepare for future challenges, opportunities, and growth.

717.397.9600 | 800.533.5271 murrayins.com

Welcome to ABC's Newest Members!

Thank you for your support of the merit shop mission!

1-800 Water Damage of Harrisburg, PA Shawn Hester, Director of Operations 3256 North Susquehanna Trail York, PA 17406 ph. (717) 844-5660 shawn.hester@ 1800waterdamage.com Sponsor: Austin Duchaine, AD&C Enterprises, LLC

The YGS Group Matt Meyers, Vice President of Sales 3650 West Market Street York, PA 17404 ph. (717) 505-9701 matt.meyers@theygsgroup.com

Yoe Construction, Inc. Tom Roddy, Vice President of Business Development PO Box 220 435 East Locust Street Dallastown, PA 17313 ph. (717) 244-1140 troddy@yoeconstruction.com Sponsor: Johnathan Holmes, P.E., Dewberry Engineers, Inc.

View a searchable membership directory at abckeystone.org!

Download the mobile app at the App Store or Google Play!

Happy Anniversary!

Congratulations

to these members celebrating milestone anniversaries in May 2022!

45 Years:

15 Years:

Commonwealth Fire Protection Co.

Legacy Electrical Services, Inc.

Pennsylvania Construction Associates, Inc.

1 Year:

40 Years:

5 Years:

Parksite/Tyvek Tenna

25 Years:

Scenic Ridge Company 20 Years:

Lancaster Electric, Inc. 7

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By: W esley Veigle, CPA, Manager, Boyer & Ritter LLC

Ask an Accountant

What Construction Contractors Need to Know About the New Lease Accounting Standard for 2022

A

fter granting a yearlong delay due to COVID-19, non-public companies must adopt the new lease accounting guidelines that greatly expands the financial reporting requirements for leases.

The new standard is effective for all non-public companies for fiscal years beginning after December 15, 2021.

Why the Change

The change is part of the Financial Accounting Standards Board’s (FASB) efforts to increase financial transparency by showing the full impact of leases on a company’s balance sheet.

The old standard faced criticism for not requiring sufficient information about a company’s leasing transactions and allowed room for various interpretations.

In response, the FASB issued Accounting Standards Codification 842 – Leases, to address these concerns.

Effects on Your Company

In the past, only capital leases were listed on the balance sheet, and operating leases were expensed straight-line on the income statement. The new standard requires the inclusion of almost all leases, both new and existing, with terms of greater than 1 year on the balance sheet.

For construction contractors, the new standard applies for all leases, including offices and warehouses, trucks, and

17

other any other leased equipment. These leases will now be presented on the balance sheet as a right-of-use-asset and a corresponding lease liability.

Depending on the size and quantity of your leases, the company’s overall assets and liabilities will be significantly higher than prior periods. These changes may cause headaches with existing banking and bonding agreements.

Potential Impacts with Lenders and Sureties Since the leases now appear on your balance sheet, they may have a significant effect on common lending and bonding ratios such as the company’s leverage (debt to equity) and return on assets (income to assets).

While the new reporting does not change the underlying financial soundness of your company, the sudden addition of liabilities to your balance sheet may at least necessitate a conversation with lenders and sureties. It’s imperative to have these conversations with these parties before the end of the year.

Bottom line

Deciding how to apply and account for the new standard is complex and may take more than merely changing some lines on a spreadsheet. The new standard could add significant amounts to both sides of the balance sheet that were not there before. The changes could directly affect ratios and other financial covenants for banking and bonding purposes, and force additional analysis for future considerations regarding buying versus leasing equipment.

It is important that you understand how to comply with the new standard and how to navigate discussion with your lender and sureties.

Wesley Veigle, CPA, is a manager at Boyer & Ritter LLC with experience providing tax and accounting services for construction industry clients and other closely-held business entities. Wesley can be reached at (717) 761-7210 or wveigle@cpabr.com.

Aldridge, Chairman of the Board

May is Mental Health Awareness Month

WHERE TO TURN FOR HELP Remember you are not alone and there’s no need to be afraid of reaching out if you or someone you know needs help. You can start by connecting with someone you trust for advice, such as a friend, family member, coworker or faith leader. There are also plenty of mental health organizations and resources available to help you find the support you need.

Scan here for a comprehensive list of tools and resources for mental health, addiction recovery and suicide prevention.

constructionsafetyweek.com

We share a bond that

WE’VE GOT jobsite. It's important to YOUR BACK help each other with connects all of us on the

support and care.

- Ken Aldridge

Aldridge, MENTAL WELLNESS FIELD GUIDE: Chairman of the Board WHEN & WHERE TO TURN FOR HELP

If you or someone you know is in a mental health emergency, contact these resources to get support: National Suicide Prevention Lifeline: 1-800-273-8255

(Press 2 for Spanish)

Crisis Text Line:

Text HOME to 741741 (to connect with a Crisis Counselor)

Crisis Service Canada: 1-833-456-4566

Veterans Crisis Line: (call, chat or text)

1-800-273-8255, Press 1 veteranscrisisline.net

Optum Public Toll-free Help Line: 1-866-342-6892

NAMI Help Line:

1-800-950-6264 Text NAMI to 741-741 constructionsafetyweek.com

18

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Hats • Hoodies • Shirts • Golf Towels • Pullovers and More!

Find new items at abckeystone.org

Attention

Contractors!

Build Your Apprenticeship Team! can help you!

• Create your own

workforce

through formalized training

• Increase

productivity, safety, and profits

• Expand your workers’

knowledge base

• Bid work more

competitively

For more information: abckeystone.org cindyd@abckeystone.org

CindyD@abckeystone.org5

2019 Apprenticeship Postcard - Contractors.indd 1

7/9/2019 10:42:06 AM

#ABCMeritShopProud Barley Snyder Announces New Hire Barley Snyder is pleased to announce the hire of Emily Watkins Marzock as an attorney in its Lancaster office.

Marzock will provide service to clients in both Trusts & Estates and Business practice areas. Marzock received her law degree from the University of Virginia after graduating from Brown University. Following law school, she practiced for several years at the Washington, D.C. office of a large, international law firm, where she provided regulatory counseling to energy and telecom companies and represented them in administrative and judicial matters.

Flyway Excavating Announces Leadership Team Changes

After 34 years, Flyway Excavating president Brad Clubb has stepped down from day-to-day operations and assumed the role of CEO. Clubb founded the company in 1987 at the age of 26, and over the years, its sales have steadily accelerated, from $1 million in its first year to an estimated $15 million in 2022. To support continued growth, Clubb and Flyway have welcomed an addition to the second-generation ownership team and several personnel changes: • Ross Clubb, Brad’s son, has assumed the role of president.

• Peter Hartmann joined Flyway this year as an estimator/ project manager.

• Bryce Workman joined Flyway this year as a business development representative.

• Kent Martin, an employee of Flyway since 2012, recently became the newest member of the ownership team.

marketing manager earlier this year. Young will oversee the team tasked with driving firm growth by collaborating with practice leaders, practice teams, as well as coaching associate attorneys’ business development efforts. The firm’s marketing team is now spearheaded by Gamon.

The U.S. District Court for the Eastern District of Pennsylvania has named Saxton & Stump attorney Kiandra D. Steffy to a committee assigned to help fill a federal magistrate judge vacancy. Steffy is one of 15 individuals selected to serve on a Merit Selection Panel for the Eastern District of Pennsylvania. The panel will review applications, interview potential candidates and recommend those applicants whom the Panel considers best qualified to serve as a federal Magistrate Judge.

Speedwell Construction, Inc. Promotes From Within

Speedwell Construction is proud to announce the promotion of two employees. Brenton Ebersole has been promoted to Senior Project Manager and Dave Morris to Business Development Manager. Brenton Ebersole, senior project manager, has 25 years of experience in construction.

Ebersole joined Speedwell Construction as a project manager in 2018. Dave Morris spent 15 years in residential construction before joining Speedwell Construction in 2015.

He started as an assistant superintendent and spent the last four years serving as a field superintendent.

Saxton & Stump Lawyers and Consultants Announces New Hires, Promotions & Appointments

Saxton & Stump has added former reporter and legal marketer Michael Sadowski to their marketing and business development team. In addition to bringing onboard a veteran writer, the firm promoted Abby (Hall) Young to business development manager and Joel Gamon to content

For inclusion in future issues of the Merit Shop Spokesman, please send your press releases to: kristi@abckeystone.org

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Young Professionals

Spotlight Meet Amir!

Tell us about the role you play in your organization:

I am a Preconstruction Manager for Warfel Construction Company. I work closely with clients and design consultants to create conceptual/detailed estimates while analyzing market conditions and performing constructability reviews.

It is the responsibility of a Preconstruction Manager to set up a project for success from the beginning and to ensure a seamless process from start to finish.

Why do you wake up and go to work every day?

There are a few reasons that I wake up and go to work every day. First, I am surrounded by an amazing team and culture that motivates me to be better each day. I am also passionate about working with our clients to take a project from an idea to a physical building that is used to serve the community.

How has your involvement in ABC Keystone provided you value in your professional life?

ABC Keystone has provided me with many opportunities to network with various individuals throughout the industry.

These individuals have not only helped me learn and grow personally, but I am beyond thankful to be able to call them friends.

What is your favorite inspirational quote?

“The goal is not to be perfect by the end, the goal is to be better today.” – Simon Sinek

Share with us a recent, favorite book: The Dichotomy of Leadership

by Jocko Willink & Leif Babin

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Amir Boutorabi Preconstruction Manager Warfel Construction Company aboutorabi@warfelcc.com

Young Professionals

Perspective

ECONOMIC UNCERTAINTY –

Preparing for the Unknown

by: Lee Summers, Project Manager, C Mechanical Services

I

t’s no secret that the economy is rapidly heading towards uncertainty. Unfortunately, we are all subject to the consequences of that same uncertainty.

Every time you put gas in your vehicle, buy groceries at the store, or purchase lumber at the supply house, you’re seeing, and FEELING the ramifications of the unsteady economy. The best thing anyone can do to ensure they can weather the storm is to be prepared.

Elizabeth Warren once said, “Budgeting your money is the key to having enough,” and I would agree that this is a mainstay of financial preparedness.

Take some time to sit down and build your budget; start with your monthly household take-home income, then list out all your expenses. Don’t forget those monthly subscriptions to Bark Box and Hulu! Once this information is together, and you do some math, you’ll quickly see if there are discrepancies between your income and your spending. This is a great opportunity to set savings goals and start putting away that rainy day fund. This is also the time to review and eliminate any unnecessary expenses; Think: do I REALLY need to have Disney+, Hulu, and Netflix?

important to remember that setting small, attainable goals for your financial future will keep you on the right track for security.

Last, look at your debts. Obviously, some debt is nearly unavoidable especially at a young age (who has 250k laying around to buy a house?) Consumer debt reached 15.6 trillion dollars in 2021. Just for reference, that looks like this: 15,600,000,000,000! That is an unimaginable amount of money to be repaid. A quick interest calculation at an average 9% interest rate shows that if paid off in 100 years, 117 billion dollars would need to be paid each month, with a whopping $124,817,920,773,968.61 in total interest payments! That is money that we as consumers are throwing away month after month.

No one knows for certain what the economy will do in the coming months, or even years. The only way to have some security is by preparing. Make a budget and stick to it. Find ways to cut out unnecessary expenses. Save your money and get rid of your debt. These steps will help to ensure you and your family can weather the storms ahead.

Once your budget is established, look at your savings goals. Perhaps you already put money away each month and feel confident in your savings plan. If you aren’t in this position, I suggest you make it a priority.

At a minimum, everyone should have an emergency fund; that is, a basic $1000 savings that you only use for emergencies. Obviously, this amount won’t get you very far with today's prices, but this is a basic SMART goal (SMART is an acronym for specific, measurable, achievable, realistic and timely.) It is

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